We're always looking at ways to reduce costs [in the PS3], replacing the current 65 nanometre Cell chip with a 45 nanometre one probably in middle of year.

So why should you care? Well, the chips should run cooler and at a lower wattage. But more importantly, shrinking the processor to something cheaper to build is absolutely essential if we're ever to see a cheaper PS3.

What we're a little confused about is why it's taking Sony so long to make this switch. Because, according to reports, IBM has long figured out how to make a 45nm Cell. So is Sony sitting on a pile of 65nm chips that haven't sold since last year? [The Guardian via Engadget]

The next die shrink is the 32nm Westmere chips next year, followed by 14nm a few years later and then the crazy sub-10nm chips after that. But they're probably going to have to make use of something like carbon nanotubes or spintronics to get below 10. The result of all that processing power, says Gelsinger, will be "a dramatic restructuring of the user interface." Yes! I've always wanted true 3D computing goggles. [CRN]

While we don't normally comment on rumours like this, we can tell you that we have no plans to release a new console in 2009.

The current 65nm chips will be tossed in favor of 45nm Core 2 Duos, starting with 2.1GHz, 3MB of shared L2 cache, 800MHz front-side bus and a better integrated graphics processor, namely the same Intel GMA X3100 found in today's 13" MacBooks. (Kasper is also reporting rumors of a similar bump up for iMacs, which would get pimp Penryns as nice as the 2.8GHz Core 2 Extreme.)

We have to ask, though, who still wants a mini? And more importantly, will the price ever drop below $500? I'd probably rather take an older $400 mini than a brand new Intel-awesome-o-fied $700 one. [AppleInsider]

On the other hand, AMD's refusal to specify when in the second half of '08 they'll launch is a bit worrying—December would basically put them a year behind Intel, and it wouldn't be the first time they've been late. Come on AMD, be awesome again, please. Update: Press release below.

AMD Demos 45nm Native Quad-Core Processors for Server, Desktop

— Customer Testing of Product Samples Underway —

HANNOVER, Germany. — March 4, 2008 —AMD (NYSE: AMD) demonstrated at the CeBit electronics exhibition its first 45nm quad-core chips running multiple operating systems and a range of processing intensive applications. The processors were produced in Dresden, Germany, in AMD's Fab 36 300mm manufacturing facility, using an advanced 45nm process co-developed with IBM.

AMD 45nm transistors are engineered to enable greater performance-per-watt capabilities in AMD processors and platforms. AMD combines new processes and materials with leading edge technologies, such as immersion lithography and AMD's fourth-generation strained silicon, for a highly-manufacturable, highly-efficient production process.

This important milestone is the first of many as AMD moves toward delivery of 45nm products later this year. The first 45nm chips demonstrated by AMD include the "Shanghai" product for server and "Deneb" for desktop platforms.

Indeed, the Core 2 Duo E8500 was comparable in performance to lower clocked quad-core chips, proving the viability of the Wolfdale architecture. The chip is likely to retail at the +$300 mark and that seems to be the only drawback—it is a little on the steep side. Regardless, the Hot Hardware fellows were still willing to give the Core 2 Duo E8500 the highly coveted "Recommended" badge, and if their test results ring true, we would not disagree. Hit the link to check out the extensive testing [Hot Hardware]

The six-core beast will be succeeded by the even meatier, Nehalem micro-architecture, which will support greater than eight cores. The work regarding the Dunnington project is still under wraps, but our friends at EDJ insist Intel has already put together a die, the size of a postage stamp, with three dual-core 45nm Penryn chips on it sharing a 16MB L3 cache. Allegedly, we'll see the Dunnington in either Q2 or Q3, this year—we'll be sure to keep you posted on any developments. [EDJ via The Inquirer]

• In January, Intel will introduce what they claim is the smallest SSD in the industry. Officially named the Z-P140 PATA SSD, the drive holds 2GB or 4GB and is 12x18x8mm (about the size of a penny if you couldn't tell from the pic), and 0.6 grams. The Z-P140 can act as a controller for compatible NAND memory, which means these drives are expandable to 16GB. Intel says that this new style of SSD should be showing up soon in several UMPCs and other mobile internet devices from companies such as Asus, BenQ, Clarion, Lenovo and more.

• Intel will also bring WiMax and other wireless connectivity options to these devices. A WiMax/Wi-Fi combo chip, code-named Echo Peak, will also come to market in 2008. Of the 25 devices in the mobile computing category planned for next year, Intel says that 20% will have WiMax, 60% will have 3G and 40% will have GPS. 100% will of course support both Wi-Fi and Bluetooth.

• For desktop users, processor capacity and hi-def performance will see major enhancements in 2008. "Skulltrail", a new dual-processor based platform, will enable high-end and professional computer users to run dual quad-core Core 2 Extreme processors for a massive 8-core performance, for gamers and other hardcore users. In addition, a new feature called HD Boost is an instruction set that will provide faster video encoding/decoding, 3D rendering and photo editing.

• Consumer electronics such as set-top boxes and digital televisions will also get a boost from "Canmore", a "system-on-a-chip" that combines 1GHz processing core with A/V processing and graphics and I/O components onto a single chip. Intel sees increased internet connectivity in these types of devices, and cited examples such as playing video games over your cable box as possible implementations.

• Santa Rosa Refresh, an updated version of the Centrino processor, is a 45nm Penryn chip with better graphics capabilities. The Refresh will be offered in notebooks and desktops and is geared to improving the quality of HD DVD and Blu-ray, among other graphic intensive applications.

• Finally, Intel says that the Gateway One and Dell XPS All-In-One will get the Penryn boost next year, and I was also told that they are "talking to Apple."[Intel]

We've also got 12 quad-core Xeons ranging from 2 to 3.2GHz with 1333Mhz or 1600MHz frontside bus options, as well as a triplet of dual-core Xeons that run up to 3.4GHz, but with half the L2 cache (6MB) of the other Penryns. The dual-cores also have a 30-day wait.

The cheapest Penryn you can score appears to be the $177 1.86GHz dual-core E5205 Xeon with a 1066MHz FSB. Quad-core wise, it'd be a 2.0 GHz E5405 Xeon for $209. All of those prices are given in bulk, too. So, race ya to Newegg? [Intel]

Further spec details are scarce, but Lenovo did mention that the D10 is outfitted with a 5400 Xeon processor and the S10 with a 3GHz Core 2 Extreme QX9650. They also noted that both computers would use NVIDIA graphics and dual Gigabit Ethernet and multiple slots, bays and USB ports for expandability. Expect the D10 and the S10 to be released this January for $1,739 and $1,199 respectively. [Press Release and Electronista]